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You have $42,400 to invest in Sophie Shoes, a stock selling for $80 a share. The initial margin requirement is 65 percent. Do not round
You have $42,400 to invest in Sophie Shoes, a stock selling for $80 a share. The initial margin requirement is 65 percent. Do not round intermediate calculations. Round your answers to two decimal places. Use a minus sign to enter negative values, if any. a. Ignoring taxes and commissions, calculate your rates of return if the stock rises to $90 a share and if it declines to $40 a share assuming you pay cash for the stock. Rate of return if the stock rises to $90 a share: % Rate of return if the stock declines to $40 a share: b. Ignoring taxes and commissions, calculate your rates of return if the stock rises to $90 a share and if it declines to $40 a share assuming you buy it using maximum leverage. Rate of return if the stock rises to $90 a share: Rate of return if the stock declines to $40 a share
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